A little more than a year ago, Orange County's longest-serving City Council was facing the prospect of political change. Two of the five men who had ruled this city without interruption for 11 years ultimately would decide not to seek reelection in the fall of 1990. A third, Councilman Gary L. Hausdorfer, was also uncertain whether he would run again.

Citing a need for new leadership, the City Council on Monday terminated longtime City Manager Stephen B. Julian, a move that officials say could cost the city up to $200,000 in severance and other payments. City leaders said a recent lawsuit, which alleged that some benefits in Julian's contract with the city constituted an abuse of public funds, had undermined Julian's authority and effectiveness. The suit was dismissed, but the damage was done, said City Councilman Kenneth B. Friess.

Citing a need for new leadership, the City Council on Monday terminated longtime City Manager Stephen B. Julian, a move that officials say could cost the city up to $200,000 in severance and other payments. City leaders said a recent lawsuit, which alleged that some benefits in Julian's contract with the city constituted an abuse of public funds, had undermined Julian's authority and effectiveness. The suit was dismissed, but the damage was done, said City Councilman Kenneth B. Friess.

A little more than a year ago, Orange County's longest-serving City Council was facing the prospect of political change. Two of the five men who had ruled this city without interruption for 11 years ultimately would decide not to seek reelection in the fall of 1990. A third, Councilman Gary L. Hausdorfer, was also uncertain whether he would run again.